Google’s artificial intelligence search mode is altering user behavior, prompting longer, more detailed queries earlier in the buying journey and generating less revenue per search than traditional methods, the company confirmed.
The shift presents a new challenge for advertisers as Google adapts its monetization strategy for AI-powered interactions, even as overall search revenue continues to grow.
Alphabet’s chief business officer, Philipp Schindler, stated that queries within AI Mode currently produce less revenue compared to conventional search queries.
Shivani Mohan, Google’s head of search data science, noted that users are now posing more extensive and specific questions at the initial stages of their purchasing process.
The average length of queries in AI Mode has tripled compared to traditional searches, according to Google.
Additionally, one in five AI Mode searches globally incorporate voice commands, images, or documents, indicating a broader range of input methods.
In response to these changes, Google is introducing multi-turn advertisements within AI Mode in the U.S. This new ad format allows promotional content to appear in subsequent, follow-up queries from users.
Despite the revenue per query challenge, Google Search and other revenue streams for Alphabet, Google’s parent company, increased 12 percent year-over-year in the third quarter of 2026.
This growth rate, however, marked a slowdown compared to previous quarters, according to company financial reports.
Paid clicks across Google’s platforms rose 8 percent during the same period, while the cost-per-click for advertisers saw a 4 percent increase.
JPMorgan analyst Doug Anmuth previously highlighted the potential for AI-driven search to affect advertising revenue models.
The company continues to invest heavily in AI development, with CEO Sundar Pichai emphasizing its importance for future growth.
Source: Search Engine Journal
